Ecowas seeks to adjust the regional Common External Tariff (CET) rate to 33%

2022-05-23 0 By

Rwanda’s New Times reported on March 22 that senior officials of the East African Community met on March 21 and failed to reach consensus on the maximum common external tariff rate for the community.Kenya and Tanzania have proposed a regional common external tariff rate of 33 per cent, Rwanda and Burundi 30 per cent and Uganda 35 per cent.In the absence of Ministerial officials from Uganda and Tanzania, the Council decided to hold another ministerial meeting on the subject next month.Business groups in the REGION recently urged MEMBER states to adopt the proposed 35% CET rate as the top rate for the next fiscal year starting July 1.East, valuing business council (EABC) chief executive, said in an interview with the media in view of promoting regional industrial and trade growth is the only way to create prosperity, EABC adhere to the highest 35% tax rate, CET for incentive tariffs on regional industrial development to provide enough difference, safeguard regional competition with products from cheap imports,Expand intraregional trade, enhance product diversification, create job opportunities, and maintain regional food security and urban development.In response, a member of the East African Parliament and the former chairman of the East African Communications, Trade and Investment Committee, said that the highest CET tax rate proposed by EABC will lead to a higher balance point between supply and demand, which ordinary consumers may not be able to afford.It is estimated that after the CET rate is raised from 25% to 35%, the trade revenue of THE REGION will increase by 18.9 million US dollars, the employment rate will increase by 0.03%, and the trade revenue of each partner country will increase by 5.5%, among which the trade revenue of Rwanda will increase by over 3.7 million US dollars.Currently, THE CET tax structure is divided into three levels, with a top rate of 25% for finished products and 10% for intermediate products, and exemptions for raw materials and capital goods.Economic and Commercial Office of the Embassy of the People’s Republic of China in the Republic of Rwanda Statement: The copyright of this article belongs to the original author, if there is a wrong source or infringement of your legitimate rights and interests, you can contact us through email, we will promptly deal with.Email address: jpbl@jp.jiupainews.com